Kenyan national and county governments owe Kenya Power KSh 7.35 billion, up 9.5%

National and county governments owed Kenya Power KSh 7.35 billion in unpaid electricity bills in the year to June 2026, up 9.5% from KSh 6.71 billion a year earlier, Business Daily reported on 12 October 2026.

The balance equals 17.7% of the distributor's gross postpaid electricity receivables of KSh 41.5 billion. Under the company's credit-control policy, postpaid customers must settle bills within 21 days of billing.

The arrears stood at KSh 2.72 billion in 2022, KSh 3.6 billion in 2023 and KSh 5.34 billion in 2024, an increase of about 170% over four years.

Kenya Power's impairment provisions against receivables rose to KSh 14.89 billion from KSh 13.33 billion.

Some of the state entities in default are public health facilities, which makes disconnection difficult. The Auditor-General's office has previously asked Kenya Power to draw up a strategy to contain the rise in unpaid bills.

"Management continues to actively engage the government and other relevant entities," Kenya Power said, as quoted by Business Daily.

The KSh 7.35 billion is separate from KSh 35.35 billion the government owes Kenya Power for recurrent losses under the Rural Electrification Scheme, up from KSh 34.77 billion.

The arrears came in a year when the company's profit rose. Net profit for the year to June 2026 was KSh 24.99 billion, up 2.1%; Capital FM reported on 18 September 2026 that profit was KSh 24.4 billion a year earlier.

Capital FM said electricity revenue rose by KSh 18.96 billion to KSh 238.24 billion, and electricity sales grew 12% to 12,777 gigawatt-hours from 11,403 gigawatt-hours. The company added 411,710 customers in the year.

Kenya Power recommended a final dividend of KSh 1.20 a share, which brings the total for the year to KSh 1.50 a share, Capital FM reported. The full-year dividend was up 50% from KSh 1, and the government holds 50.1% of the listed distributor.